In addition to the professional service corporation and professional service limited liability company (PLLC), licensed New York professionals who wish to do business through a limited liability entity can do so through a registered limited liability partnership (LLP).

The legal benefits of operating as a New York LLP is barely different from operating as New York PLLC. In many cases, the choice is one of form over substance. In some states, partners in an LLPs have less liability protection than members of a PLLC. This is not the case in New York.

The distinguishing factor between the New York LLP and New York PLLC is the former contemplates that a partnership has already been formed. Thus, an LLP is not technically “formed,” but rather “registered.” Hence, as a partnership requires at least two people, if you are starting a professional practice on your own, an LLP is not an appropriate choice.

If you’re contemplating whether an LLP is right for your business, or are thinking of starting a professional practice, let us know. We’re here to help!